[CRElender]

All the more reason to use an SBA Preferred Lender, PLP. We issue our own SBA approvals.

-Dan

[Incbiz440]

BREAKING NEWS -- WSJ Says SBA to Cut 40% of Employees, 2700 Jobs



Wall Street Journal’s Meredith McGraw and Scott Peterson exclusively report SBA is planning to cut more than 40% of its workforce this morning.



“The extensive workforce reduction and restructuring will take the SBA, an agency with more than 6,500 employees, back to pre-pandemic staffing levels by eliminating around 2,700 positions. The cuts will affect nonessential roles at the agency, and include voluntary resignations and the expiration of appointments made during the Covid-19 pandemic.”



SBA administrator Kelly Loeffler also posted a video on X, titled "Change is coming to the SBA." Following is the transcription:



"I'm Kelly Loeffler, Administrator of the US Small Business Administration. In my first message from the SBA, you saw what I encountered when I first arrived in Washington. Rows of empty desks sitting in multimillion dollar office buildings, thousands of work from home staff collecting an average salary in excess of a hundred and $34,000. That's more than double the national average wage. But the waste, inefficiency, and mismanagement go much deeper.



Since the pandemic, the SBA has doubled its workforce, expanding in size, scope, and spending with miserable results. Instead of reducing the workforce after the pandemic, the last administration deployed the full force of this agency to advance a new partisan agenda from Green New Deal lending programs to DEI contracting. Predictably, the SBA services suffered. For four full years, the agency failed to pass an audit. Our largest loan program, which should operate at zero cost to taxpayers, saw negative cash flow for the first time in over a decade.



Meanwhile, they refused to investigate or prosecute more than 200,000,000,000 in pandemic era fraud that is still to this day owed to American taxpayers. That's why change is coming to the SBA. The SBA is getting back to work. It needs to get back to our founding mission of empowering America's job creators. This agency is done wasting millions of tax dollars to fund a progressive pandemic era bureaucracy.



We will not allow fiscal mismanagement to threaten our loan programs or criminals to get away with fraud. But we will evaluate every program and expenditure, and we will right size the agency to transform the SBA into a high efficiency engine for America's Entrepreneurs and taxpayers. As administrator, I'm committed to restoring the SBA's mission of promoting America's small businesses with accountability and results. Because when we restore our mission, we will also restore the historic prosperity that lifted up millions of small businesses during President Trump's first term. In short, we will make Main Street great again."

I see someone else gets Coleman's voluminous amount of emails.

If we're returning to prepandemic levels it doesn't seem to be much of an issue to me. They're not churning PPP and EIDL loans anymore so it would seem to make sense that some of that COVID-era bump in staffing would no longer be necessary.

[Incbiz440]

Dan is correct:

Examples of SBA PLP Lenders:

Live Oak Bank
Huntington National Bank
Newtek Small Business Finance
Celtic Bank
Readycap Lending
BayFirst National Bank

The only non-PLP lenders I ever run into are community banks and in that case either they're still new or aren't focused on SBA.

[Incbiz440]

Except for:

"Trump says student loans will be handled by Small Business Administration"

That's how cutbacks and cost savings work, by magic!

That is a good point though.

[etci]

If we're returning to prepandemic levels it doesn't seem to be much of an issue to me. They're not churning PPP and EIDL loans anymore so it would seem to make sense that some of that COVID-era bump in staffing would no longer be necessary.

There is an issue with servicing the amount of EIDL loans that they pushed out. The answer to that is definitely not how they have been because their EIDL servicing is atrocious. Something needs to change and if tis is the shake up that works I am all for it. Something tells me throwing more work (ie student loans) at less staff will not turn out the way Trump thinks it will.

[Incbiz440]

There is an issue with servicing the amount of EIDL loans that they pushed out. The answer to that is definitely not how they have been because their EIDL servicing is atrocious. Something needs to change and if tis is the shake up that works I am all for it. Something tells me throwing more work (ie student loans) at less staff will not turn out the way Trump thinks it will.

Aside from all of that - which are all valid points - I'm curious how they came to the conclusion that the SBA of all agencies is the best place to put student loan servicing. Why not the FHA? USDA? We can't get rid of this function completely so just stick it wherever.

The unfortunate part of all of that is that once you're on the hook for your student loans or EIDL you have no recourse. You just suffer.

I think lenders already calling out being PLP will become a minor selling point, or maybe just screw over smaller lenders who aren't.

[Incbiz440]

I had a lady that was in default with her EIDL and was trying to get a SBA start up Micro Loan as I suggested. I had her call the EIDL customer service line and report that she was uncollectable. They removed her default and put her in a 10% hardship payment. She now qualifies for a SBA start up micro loan. She called back extremely happy that she had some feasible direction now.

I just meant that if service declines due to layoffs and additional student loan duties (or viceversa, your student loan is now serviced by a much reduced SBA) you have no recourse, you're stuck with it.

[CRElender]

If timeliness and certainty of execution are important to you, Enterprise Bank is your best bet.